Resolution - how it works

The Central Bank of Ireland is the national resolution authority for Ireland. In its capacity as resolution authority, the Central Bank is responsible for the orderly resolution of failing credit institutions, certain investment firms and credit unions.

The Central Bank manages resolution funds and prepares resolution plans for these entities. These plans can then be activated in the event of a failing or likely to fail determination, in accordance with the EU Bank Recovery and Resolution Directive (BRRD).

The Resolution Function within the Central Bank has the responsibility for day-to-day for resolution matters. There is both European and Irish legislation governing these areas.

Single Resolution Mechanism

The Single Resolution Mechanism (SRM) is made up of a network of national resolution authorities and a central decision making body, the Single Resolution Board (SRB). The Central Bank works closely with the SRB, which is directly responsible for significant institutions and cross border groups while the Central Bank remains directly responsible for less significant institutions, investment firms and credit unions.

The SRB is a Brussels based independent EU agency. It is the resolution authority for the Banking Union and is responsible for the management of the Single Resolution Fund, to which all credit institutions within the Banking Union contribute.